US yields have started moving up again, and the dollar is showing a strong correlation for June. In this regard, FXCM's daily USDOLLAR basket chart has moved from its area of weakness, between the bottom blue and red bands, into its neutral zone, between the blue bands (green rectangle). On a relative basis, this is a bullish movement and may suggest the recent weakness was nothing more than a dip in the uptrend.
The hourly chart is also positive. Both the trend following EMAs and the stochastic have crossed bullishly (black ellipses). The stochastic is now above 80 (blue arrow). If it holds this position, the hourly momentum will support the USDOLLAR. However, please note that if it rolls over and falls below 80, the rate of change may be declining.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.